Shri Bajrang Power to trim debt by 50% from Rs 700-cr IPO
Mumbai: Raipur-based integrated steel manufacturer Shri Bajrang Power & Ispat plans to pay back around Rs 400 crore of its long-term debt from the proceeds of its forthcoming Rs 700-crore initial share sale.
It has mining rights with an iron ore mine located in Uttar Bastar Kanker in Chhattisgarh wherein it is permitted to mine 1.2 MT annually. That apart, it has an open-cast manganese ore mine in Vizianagaram in Andhra Pradesh.
The company, among the top 10 in terms of installed capacity for iron ore pellets, iron ore beneficiation and sponge iron, has a little over Rs 840 crore of debt, of which nearly half is long-term debt which it plans to repay with the IPO money. After the repayment, the fully family-owned company will be left with around Rs 500 crore of debt, Anand Goel, one of the promoters and the executive director of the company, told PTI.
The company is undertaking a Rs 217-crore brownfield expansion which will expand its capacity for sponge iron, steel melting, rolling mill, ferro alloys and captive power. The project is expected to be completed by early January next, said Sandeep Goel, one of the promoters and the chief financial officer, adding the entire capital expenditure was through internal accruals.